[Congressional Record Volume 152, Number 119 (Thursday, September 21, 2006)]
[Senate]
[Pages S9891-S9893]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                             COST ESTIMATES

  Mr. LUGAR. Mr. President, I ask unanimous consent for three cost 
estimates from the Congressional Budget Office to be printed in the 
Record.
  These estimates are for three important bills which the Committee on 
Foreign Relations has already reported to the Senate. They are S. 2489, 
S. 3709, and S. 3722.
  The Standing Rules of the Senate require that committee reports on 
bills or joint resolutions contain cost estimates for such legislation.
  When the Committee on Foreign Relations reported these bills earlier 
this year, the committee had not received the Congressional Budget 
Office's cost estimates.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

               Congressional Budget Office Cost Estimate

     S. 2489--U.S. Additional Protocol Implementation Act
       Summary: S. 2489 would implement the obligations of the 
     United States under the Protocol Additional to the Agreement 
     between the United States of America and the International 
     Atomic Energy Agency (IAEA) for the Application of Safeguards 
     in the United States of America (hereafter called the 
     Additional Protocol). The Additional Protocol was signed by 
     the United States in 1998 and ratified by the Senate in 2004 
     (Treaty Document 107-7). The bill would authorize government 
     agencies to conduct vulnerability assessments at government 
     and commercial facilities to protect national security 
     interests. The bill also would authorize the U.S. government 
     to seek search warrants when owners of commercial facilities 
     bar the government from entering the location in support of 
     the IAEA inspections and would establish guidelines for 
     conducting environmental sampling at both government and 
     commercial locations.
       CBO estimates that implementing S. 2489 would cost $17 
     million in 2007 and $72 million over the 2007-2011 period, 
     assuming appropriation of the necessary amounts. Enacting the 
     bill would not affect direct spending or receipts.
       Section 4 of the Unfunded Mandates Reform Act (UMRA) 
     excludes from the application of that act any legislative 
     provisions that are necessary for the ratification or 
     implementation of international treaty obligations. CBO has 
     determined that because this bill would implement the 
     Additional Protocol, it falls within that exclusion. CBO has 
     thus not reviewed the bill for intergovernmental or private-
     sector mandates.
       Estimated cost to the Federal Government: The estimated 
     budgetary impact of S. 2489 is shown in the following table. 
     The costs would fall within budget functions 050 (national 
     defense), 270 (energy), and 370 (commerce and housing 
     credit). CBO assumes that the bill will be enacted near the 
     start of fiscal year 2007 and that the estimated amounts will 
     be appropriated each year.

------------------------------------------------------------------------
                                      By fiscal year, in millions of
                                                 dollars--
                                 ---------------------------------------
                                   2007    2008    2009    2010    2011
------------------------------------------------------------------------
              CHANGES IN SPENDING SUBJECT TO APPROPRIATION
 
Estimated Authorization Level...      23      13      13      13      13
Estimated Outlays...............      17      15      14      13      13
------------------------------------------------------------------------

       Basis of estimate: Enacting S. 2489 would enable government 
     agencies to implement the Additional Protocol. Specifically, 
     the bill would:
       Authorize government agencies to conduct vulnerability 
     assessments at government and commercial facilities,
       Designate government agencies to provide outreach programs 
     to the commercial facilities and to issue regulations in 
     order to implement the provisions of the Additional Protocol,
       Authorize the federal government to seek search warrants 
     when the owner of a commercial facility refuses to give 
     consent for inspection by the IAEA, and
       Set guidelines for the IAEA to conduct environmental 
     sampling at government and commercial facilities.
       CBO expects that most of the assessments would be performed 
     by the Department of Defense (DoD) and the Department of 
     Energy (DOE) at universities, fuel-fabrication plants, and 
     commercial manufacturing sites currently working on DoD 
     projects, as well as DOE labs. Although DoD and DOE already 
     have the authority to perform such assessments, CBO believes 
     that those agencies will not perform these assessments unless 
     S. 2489 is enacted. Based on information from those two 
     departments, CBO estimates that the Department of Defense 
     would conduct about 50 assessments a year, while the 
     Department of Energy would conduct about 50 assessments in 
     2007 and about 10 assessments each year thereafter, at an 
     average cost of about $200,000 per assessment. 
     Accordingly, CBO estimates that conducting vulnerability 
     assessments would cost $15 million in 2007 and $65 million 
     over the 2007-2011 period, assuming appropriation of the 
     estimated amounts.
       CBO expects that most of the outreach efforts would be 
     performed by the Department of Commerce (DOC). DOC is 
     developing a new database to support the reporting 
     requirements of the Additional Protocol. The department also 
     would conduct outreach, training, and inspection support 
     programs at commercial facilities. CBO anticipates that the 
     Nuclear Regulatory Commission's (NRC's) staff would revise 
     regulations to include the new requirements for implementing 
     the Additional Protocol and would prepare guidance documents 
     for its commercial licensees to prepare for the IAEA 
     inspections. Under current law, 90 percent of the additional 
     costs for the NRC would be covered by fees paid by operators 
     of nuclear power plants. Based on information provided by DOC 
     and NRC, CBO estimates that the net cost of these efforts 
     would be $2 million in 2007 and $7 million over the 2007-2011 
     period.
       CBO expects that most facilities would cooperate with the 
     inspections and that the costs to seek and execute warrants 
     required under the bill would be insignificant. Also, based 
     on information from the State Department, CBO believes that 
     the IAEA would not be able to conduct environmental sampling 
     at government or commercial facilities because the United 
     States, as a lawful nuclear weapons state, would forbid such 
     sampling under existing treaty rights. Thus, CBO estimates 
     that the U.S. government would incur no costs related to such 
     sampling.
       Intergovernmental and Private-Sector Impact: Section 4 of 
     the UMRA excludes from the application of that act any 
     legislative provisions that are necessary for the 
     ratification or implementation of international treaty 
     obligations. CBO has determined that because this bill would 
     implement the Additional Protocol, it falls within that 
     exclusion. CBO has thus not reviewed the bill for 
     intergovernmental or private sector mandates.
       Previous CBO Estimate: On August 10, 2006, CBO transmitted 
     an estimate for S. 3709, a bill to exempt from certain 
     requirements of the Atomic Energy Act of 1954 United States 
     exports of nuclear materials, equipment, and technology to 
     India, and to implement the United States Additional 
     Protocol, as ordered reported on July 20, 2006. Title II of 
     that bill is identical to S. 2489, and the estimated costs 
     are the same in both estimates.
       At the request of the Senate Committee on Foreign 
     Relations, CBO prepared an analysis of the costs associated 
     with ratifying the Protocol Additional to the Agreement 
     Between the United States of America and the International 
     Atomic Energy Agency Regarding Safeguards in the United 
     States (Treaty Document 107-7). In that analysis, dated March 
     5, 2004, CBO estimated that one-time costs to the U.S. 
     government for implementing the Additional Protocol would 
     total between $20 million and $30 million, and recurring 
     costs would total between $10 million and $15 million a year, 
     assuming appropriation of the estimated amounts. Those 
     estimated costs are similar to the costs described in this 
     estimate.
       Estimate Prepared by: Federal Costs: Raymond J. Hall; 
     Impact on State, Local, and Tribal Governments: Melissa 
     Merrell; Impact on the Private Sector: Tyler Kruzich.
       Estimate Approved by: Robert A. Sunshine, Assistant 
     Director for Budget Analysis.
                                  ____


               Congressional Budget Office Cost Estimate

     S. 3709--A bill to exempt from certain requirements of the 
         Atomic Energy Act of 1954 United States Exports of 
         nuclear materials, equipment, and technology to India, 
         and to implement the United States Additional Protocol
       Summary: S. 3709 would exempt India from the current-law 
     prohibition on the transfer of nuclear materials and 
     technology to countries that are not signatories to the 
     Treaty on the Non-Proliferation of Nuclear Weapons. In 
     addition, S. 3709 would implement the obligations of the 
     United States under the Protocol Additional to the Agreement 
     between the United States of America and the International 
     Atomic Energy Agency (IAEA) for the Application of Safeguards 
     in the United States of America (hereafter called the 
     Additional Protocol).
       CBO estimates that implementing S. 3709 would cost $17 
     million in 2007 and $72 million over the 2007-2011 period, 
     assuming appropriation of the necessary amounts. Enacting the 
     bill would not affect direct spending or receipts.
       Section 4 of the Unfunded Mandates Reform Act (UMRA) 
     excludes from the application of that act any legislative 
     provisions that are necessary for the ratification or 
     implementation of international treaty obligations. CBO has 
     determined that because title II of this bill would implement 
     the Additional Protocol, it falls within that exclusion. 
     Other provisions of the bill contain no intergovernmental or 
     private-sector mandates and would not affect the budgets of 
     state, local, or tribal governments.
       Estimated Cost to the Federal Government: The estimated 
     budgetary impact of S. 3709 is shown in the following table. 
     The costs would fall within budget functions 050 (national 
     defense), 270 (energy), and 370 (commerce and housing 
     credit).

[[Page S9892]]



----------------------------------------------------------------------------------------------------------------
                                                              By fiscal year, in millions of dollars--
                                                ----------------------------------------------------------------
                                                     2007         2008         2009         2010         2011
----------------------------------------------------------------------------------------------------------------
                                  CHANGES IN SPENDING SUBJECT TO APPROPRIATION
 
Estimated Authorization Level..................           23           13           13           13           13
Estimated Outlays..............................           17           15           14           13           13
----------------------------------------------------------------------------------------------------------------

       Basis of Estimate: CBO assumes that the bill will be 
     enacted near the start of fiscal year 2007 and that the 
     estimated amounts will be appropriated each year.
     U.S. Additional Protocol Implementation (title II)
       Enacting title II of S. 3709 would enable government 
     agencies to implement the Additional Protocol. Specifically, 
     the bill would: Authorize government agencies to conduct 
     vulnerability assessments at government and commercial 
     facilities, Designate government agencies to provide outreach 
     programs to the commercial facilities and to issue 
     regulations in order to implement the provisions of the 
     Additional Protocol, Authorize the federal government to seek 
     search warrants when the owner of a commercial facility 
     refuses to give consent for inspection by the IAEA, and Set 
     guidelines for the IAEA to conduct environmental sampling at 
     government and commercial facilities.
       CBO expects that most of the assessments would be performed 
     by the Department of Defense (DoD) and the Department of 
     Energy (DOE) at universities, fuel-fabrication plants, and 
     commercial manufacturing sites currently working on DoD 
     projects, as well as DOE labs. Although DoD and DOE already 
     have the authority to perform such assessments, CBO believes 
     that those agencies will not perform these assessments unless 
     S. 2489 is enacted. Based on information from those two 
     departments, CBO estimates that the Department of Defense 
     would conduct about 50 assessments a year, while the 
     Department of Energy would conduct about 50 assessments in 
     2007 and about 10 assessments each year thereafter, at an 
     average cost of about $200,000 per assessment. Accordingly, 
     CBO estimates that conducting vulnerability assessments would 
     cost $15 million in 2007 and $65 million over the 2007-2011 
     period, assuming appropriation of the estimated amounts.
       CBO expects that most of the outreach efforts would be 
     performed by the Department of Commerce (DOC). DOC is 
     developing a new database to support the reporting 
     requirements of the Additional Protocol. The department also 
     would conduct outreach, training, and inspection support 
     programs at commercial facilities. CBO anticipates that the 
     Nuclear Regulatory Commission's (NRC's) staff would revise 
     regulations to include the new requirements for implementing 
     the Additional Protocol and would prepare guidance documents 
     for its commercial licensees to prepare for the IAEA 
     inspections. Under current law, 90 percent of the additional 
     costs for the NRC would be covered by fees paid by operators 
     of nuclear power plants. Based on information provided by DOC 
     and NRC, CBO estimates that the net cost of these efforts 
     would be $2 million in 2007 and $7 million over the 2007-2011 
     period.
       CBO expects that most facilities would cooperate with the 
     inspections and that the costs to seek and execute warrants 
     required under the bill would be insignificant. Also, based 
     on information from the State Department, CBO believes that 
     the IAEA would not be able to conduct environmental sampling 
     at government or commercial facilities because the United 
     States, as a lawful nuclear weapons state, would forbid such 
     sampling under existing treaty rights. Thus, CBO estimates 
     that the U.S. government would incur no costs related to such 
     sampling.
     United States-India Peaceful Atomic Energy Cooperation (title 
         I)
       Under title I of this bill, the United States could 
     transfer nuclear material and technology to India, subject to 
     an agreement between the two countries, if the President 
     certifies that India meets certain conditions. Those 
     conditions would require India to: Provide a credible plan to 
     separate civilian and military nuclear facilities, 
     Conclude an agreement with the International Atomic Energy 
     Agency, Work actively with the United States to conclude a 
     multilateral treaty to stop the production of fissile 
     materials for use in nuclear weapons or other nuclear 
     explosive devices, Support efforts of the international 
     community to prevent proliferation of nuclear enrichment 
     and reprocessing technology, and Gain the consensus 
     support of the Nuclear Suppliers Group, an organization of 
     countries with nuclear capabilities, for trade in items 
     covered by its guidelines.
       Additionally, in the event an agreement is reached for 
     nuclear cooperation between India and the United States, the 
     bill would require the President to submit a report detailing 
     the basis for determining that India meets all the necessary 
     requirements and to inform the appropriate committees of any 
     significant nuclear activities of India. The bill also would 
     require that the agreement be approved by a joint resolution 
     of the two Houses of Congress that has been enacted into law. 
     And finally, the bill would require that the exemption from 
     current-law prohibition would cease to be effective if India 
     detonates a nuclear explosive device after the date of the 
     enactment of this bill.
       CBO estimates that implementing title I of this bill would 
     have no significant impact on the federal budget.
       Intergovernmental and Private-Sector Impact: Section 4 of 
     UMRA excludes from the application of that act any 
     legislative provisions that are necessary for the 
     ratification or implementation of international treaty 
     obligations. CBO has determined that because title II of this 
     bill would implement the Additional Protocol, it falls within 
     that exclusion. Other provisions of the bill contain no 
     intergovernmental or private-sector mandates and would not 
     affect the budgets of state, local, or tribal governments.
       Previous CBO estimate: On August 10, 2006, CBO transmitted 
     a cost estimate for S. 2489, the U.S. Additional Protocol 
     Implementation Act. That bill contains provisions that are 
     identical to those in title II of S. 3709, and the estimated 
     costs are the same in both estimates.
       On July 13, 2006, CBO transmitted a cost estimate for H.R. 
     5682, the United States and India Nuclear Cooperation 
     Promotion Act of 2006, as ordered reported by the House 
     Committee on International Relations on June 27, 2006. That 
     bill contains provisions that are very similar to those in 
     title I of S. 3709, and the estimated costs are the same in 
     both estimates.
       At the request of the Senate Committee on Foreign 
     Relations, CBO prepared an analysis of the costs associated 
     with ratifying the Protocol Additional to the Agreement 
     Between the United States of America and the International 
     Atomic Energy Agency Regarding Safeguards in the United 
     States (Treaty Document 107-7). In that analysis, dated March 
     5, 2004, CBO estimated that one-time costs to the U.S. 
     government for implementing the Additional Protocol would 
     total between $20 million and $30 million, and recurring 
     costs would total between $10 million and $15 million a year, 
     assuming appropriation of the estimated amounts. Those 
     estimated costs are similar to the costs described in this 
     estimate.
       Estimate prepared by: Federal Costs: Raymond J. Hall and 
     Sam Papenfuss, Impact on State, Local, and Tribal 
     Governments: Melissa Merrell, Impact on the Private Sector: 
     Tyler Kruzich.
       Estimate approved by: Robert A. Sunshine, Assistant 
     Director for Budget Analysis.
                                  ____


               Congressional Budget Office Cost Estimate

     S. 3722--Naval Vessels Transfer Act of 2006
       Summary: S. 3722 would authorize the transfer of 10 naval 
     vessels to foreign countries: five by grant and five by sale. 
     In each case, the bill identifies the vessel, the type of 
     transfer, and the recipient country. The authority to 
     transfer those vessels would expire two years after 
     enactment.
       CBO estimates the specified sales would increase offsetting 
     receipts by $60 million over the 2007-2008 period. (Asset 
     sale receipts are a credit against direct spending.)
       S. 3722 contains no intergovernmental or private-sector 
     mandates as defined in the Unfunded Mandates Reform Act 
     (UMRA) and would not affect the budgets of state, local, or 
     tribal governments.
       Estimated Cost to the Federal Government: CBO's estimate of 
     the budgetary effects of S. 3722 are shown in the following 
     table. The costs of this legislation fall within budget 
     function 150 (international affairs). For this estimate, CBO 
     assumes that S. 3722 would be enacted near the beginning of 
     fiscal year 2007.

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                         By fiscal year, in millions of dollars--
                                ------------------------------------------------------------------------------------------------------------------------
                                    2006       2007       2008       2009       2010       2011       2012       2013       2014       2015       2016
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                               CHANGES IN DIRECT SPENDING
 
Estimated Budget Authority.....          0        -10        -50          0          0          0          0          0          0          0          0
Estimated Outlays..............          0        -10        -50          0          0          0          0          0          0          0          0
--------------------------------------------------------------------------------------------------------------------------------------------------------

       Basis of estimate: S. 3722 would authorize the transfer of 
     10 naval vessels to foreign countries. Under the act, five 
     specific vessels could be transferred to designated countries 
     by grant and the other five vessels could be sold to 
     specified countries. Based on information from the Navy 
     regarding the value of these ships and recent experience with 
     actual sales and grants, CBO estimates that

[[Page S9893]]

     the sales would increase offsetting receipts by $10 million 
     in 2007 and $60 million over the 2007-2008 period.
       Intergovernmental and private-sector impact: S. 3722 
     contains no intergovernmental or private-sector mandates as 
     defined in UMRA and would not affect the budgets of state, 
     local, or tribal governments.
       Estimate prepared by: Federal Costs: Sam Papenfuss.
       Impact on State, Local, and Tribal Governments: Melissa 
     Merrell.
       Impact on Private Sector: Victoria Liu.
       Estimate approved by: Peter H. Fontaine, Deputy Assistant 
     Director for Budget Analysis.

                          ____________________